Question

its, unit (E16-10 Overton Company has gathered the following information. costs. Units in beginning work in process 20.000 Units started into production 164,000 Units in ending work in process 24,000 Percent complete in ending work in process: Conversion costs 60% Materials 100% Costs incurred: Direct materials $101,200 Direct labor $164,800 Overhead to $184,000 Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.

Answer 1

a) Equivalent units of production: Flow of production Direct Materials Conversion Beginning work in process inventory Started during period To account for Physical Units 20.000 164.000 184.000 Units completed Ending work in process inventory Unit Accounted for (Equivalent unit) 160.000 24,000 184.000 160,000 24,000 184,000 160,000 14,400 174,400 b) The unit cost of production: Costs Totals Direct Conversion Costs incurred during period Total costs to account for (a) Equivalent units (b) Equivalent unit costs Materials $450.000 $101,200 $450,000 $101,200 184.000 $2.55 $0.55 $348,800 $348,800 174,400 $2.00 c) Assignment of costs: Completed units Ending work in process costs Costs accounted for $408.000 $42.000 $450,000 $88,000 $13,200 $101,200 $320,000 $28,800 $348,800